Strong alliance can help farmers expand production

Vietnamese agriculture will suffer losses on both domestic and overseas markets if the alliance between the state, scientists, businesses, and farmers is not improved.
Tang Minh Loc, Director General of the Cooperatives and Rural Development Department under the Ministry of Agriculture and Rural Development, emphasized this in an interview granted to our reporter.
VOV: Many agricultural experts say Vietnamese agriculture can not penetrate the global market it the alliance between the state, scientists, businesses, and farmers is not improved. What is your opinion?
Mr. Loc: Integrating into the world is like crossing the seas. Vietnamese agriculture can only develop if the alliance is strong.
VOV: Whenever there is a bumper crop, the prices of agricultural products usually drop. Why so?
Mr. Loc: Farmers tend to cultivate crops that fetch higher prices than the previous crop. Supply, therefore, will exceed demand and will lead to a drop in prices.
This is attributed to the State’s weak management. In many countries, the state provides farmers with seeds and fertilizer. In Vietnam we have not been able to do this. The state only supports businesses in buying certain products from farmers such as rice, salt, and coffee.
VOV: When the market price of agricultural products is higher than agreed between farmers and businesses, farmers usually sell their products to middlemen. When it is lower, they are forced to sell out products cheap. That’s why businesses are not willing to invest in material production zones and farmers find it difficult to expand production in the face of unreasonable price gauging. What can we do about this?
Mr. Loc: If the problem cannot be solved, Vietnamese agriculture will suffer losses on both domestic and overseas markets.
Both farmers and businesses need legal consultation before they sign their contracts so that they are aware of their responsibilities. Heavy fines should be imposed on those who break the contract.
VOV: What is the

Tang Minh Loc, Director General of the Cooperatives and Rural Development Department under the Ministry of Agriculture and Rural Development, emphasized this in an interview granted to our reporter.

VOV: Many agricultural experts say Vietnamese agriculture can not penetrate the global market it the alliance between the state, scientists, businesses, and farmers is not improved. What is your opinion?

Mr. Loc: Integrating into the world is like crossing the seas. Vietnamese agriculture can only develop if the alliance is strong.

VOV: Whenever there is a bumper crop, the prices of agricultural products usually drop. Why so?

Mr. Loc: Farmers tend to cultivate crops that fetch higher prices than the previous crop. Supply, therefore, will exceed demand and will lead to a drop in prices.

This is attributed to the State’s weak management. In many countries, the state provides farmers with seeds and fertilizer. In Vietnam we have not been able to do this. The state only supports businesses in buying certain products from farmers such as rice, salt, and coffee.

VOV: When the market price of agricultural products is higher than agreed between farmers and businesses, farmers usually sell their products to middlemen. When it is lower, they are forced to sell out products cheap. That’s why businesses are not willing to invest in material production zones and farmers find it difficult to expand production in the face of unreasonable price gauging. What can we do about this?

Mr. Loc: If the problem cannot be solved, Vietnamese agriculture will suffer losses on both domestic and overseas markets.

Both farmers and businesses need legal consultation before they sign their contracts so that they are aware of their responsibilities. Heavy fines should be imposed on those who break the contract.

VOV: What is the best way to cement the alliance?

Mr. Loc: Although there have been many seminars about the connection between the state, scientists, businesses, and farmers, there has not been much improvement. In my opinion, there are four things we must do: create exclusive agricultural zone, improve the infrastructure, define the responsibilities of all stakeholders, form organizations of economic referees and a mechanism for fining violators, and raise risk-sharing funds.